Yes. The penalty does not apply if the disbursement is made:

  • as a consequence of death, disability, due to a severe, chronic, degenerative, and terminal disease affecting the person or a family member within the fourth degree of consanguinity or second of affinity;
  • unemployment of the individual person (as defined in the tax code),
  • because the person will use the amount to be disbursed to cover certain expenses relating to the university studies of a direct dependent of the person,
  • for purchases or construction of the person’s first main home in Puerto Rico.
  • to repair or rebuild the main home that has been affected by fire, hurricane, earthquake or any other natural cause,
  • to avoid imminent foreclosure or arrears on the mortgage of the person first main home in Puerto Rico due to the loss of employment or verifiable substantial reduction in income,
  • for the purchase of a computer (maximum withdrawal of up to $1,200), for a dependent up to the second degree of consanguinity and who is pursuing studies up to the university level. This withdrawal may be made once every six (6) years.

In addition, the penalty does not apply if the individual transfers the distributed amount to another IRA account (rollover) within 60 days of receiving the disbursement. The Bank will retain any penalties required by the government, unless the individual provides evidence of the deposit at another Institution.

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